Housing sales declined again in the first quarter of 2026, while house prices recorded their first slowdown in nearly two years.
Source: Adobe Stock
Author: Redaction
Housing sales continue downward trend
The Portuguese property market started 2026 with signs of cooling. After a period marked by record highs in both prices and activity, housing sales fell for the second consecutive quarter. Between January and March, 37,745 homes were transacted, 8.7% fewer than in the same period last year.
Data released by the National Statistics Institute (INE) also shows that the decline was more pronounced in new-build homes. New home sales fell by 11.6% to 7,389 units, while existing homes recorded a drop of 8%, totalling 30,356 transactions.
Despite the reduction in the number of deals, the total value of transactions reached €9.9 billion, up 3.2% year-on-year, reflecting the continued rise in prices in the residential market.
House prices continue to rise, but at a slower pace
House prices maintained strong growth in the first quarter of 2026, although with signs of moderation. The House Price Index increased by 17.8% compared with the same period in 2025, a rate 1.1 percentage points lower than in the previous quarter.
This was the first slowdown in prices since the second quarter of 2024. Existing homes continued to lead growth, with a 19.7% increase, while new homes rose by 12.6%.
On a quarterly basis, house prices grew by 3.8%, below the 4% recorded at the end of 2025. Used homes increased by 4.2%, while new builds rose by 2.7%, confirming that demand pressure remains stronger in this segment.
Households dominate purchases and non-residents decline
Households remained the main drivers of the housing market in Portugal. In the first quarter of the year, they purchased 32,828 homes, equivalent to 87% of all transactions. Investment by this segment reached €8.6 billion, representing 86.4% of total value.
Buyers with tax residence outside Portugal reduced their presence in the market. Between January and March, 1,770 homes were purchased by non-residents, a year-on-year decrease of 15.6%.
At regional level, the number of transactions fell across all areas of the country, with the sharpest declines recorded in Madeira, the Azores and the Algarve. However, several regions still recorded increases in transaction value, showing that rising property prices continue to support the market despite lower activity.
The INE data therefore points to a less dynamic housing market in terms of sales volume, but one still characterised by high house prices and significant residential property appreciation.
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